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QUESTION:

Rod manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the    of inflation

ANSWER:

Rod manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of themenu costs  Correct of inflation.
Points:
1 / 1
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Explanation:
Rapid inflation forces firms to change their prices more frequently to ensure that their revenues keep pace with the rate at which the overall price level is rising. Doing so requires resources that would otherwise be put to more productive uses. The costs associated with changing price tags, price lists, website content, catalogs, and menus are known as the menu costs of inflation.

Posted by Cleveland on September 10, 2024
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